OREANDA-NEWS. MMX announced to the market that it has renewed the lease for mining rights with the Companhia de Mineracao da Serra da Farofa (Cefar)until 2034, for operations at the Tico-Tico and Ipe mines, located in Serra Azul in Minas Gerais. Until the renewal of the contract, mineral exploration was guaranteed in the area until 2021. The National Department of Mineral Production (DNMP) must still approve the amendments to the contract, as required by law.

For the lease of the mining concessions, MMX will pay a monthly 10% of net sales of MMX Sudeste, after deducting taxes and logistics costs. This amount is the same as what MMX was already paying to Cefar. In 2019 the rate will go to 11.5% and, from January 2022, this percentage will be readjusted to 12.5%, the maximum final rate, remaining at this rate until December 2034.

For MMX, the renewal of this contract confirms the success of the partnership which began in 2008, and guarantees MMX rights to almost all the reserves of iron ore available in Serra Azul Unit. In addition, the renewal of this agreement with Cefar is another milestone, reinforcing the options for funding of the production expansion project at MMX Sudeste.

“For us this is an extremely important achievement and, without doubt, a seal of confidence as regards the carrying out of the necessary investments for the expansion project for the Serra Azul Unit" declared Carlos Gonzalez, CEO of MMX.